Lemon Tree Hotels made its debut on Monday with a 10% premium at Rs. 61.60 over the issue price of Rs. 56 on the National Stock Exchange.
The stock price increased to Rs. 65 or 16% higher over the issue price therafter in trade.
The issue got a subscription to the tune of 1.19 times during the IPO issue that remained open from March 26 to March 28, 2018. Against the total issue size of 12,98,35,580 shares, the hospitality chain received bids for 15.49 crore shares.
Price band for the Rs. 1,038 crore IPO issue was fixed at Rs 54-56 per share.
The quota reserved for qualified institutional buyers or QIBs was subscribed 3.89 times while the retail and non-institutional investor class subscribed 12% each.
From anchor investors, the company netted proceeds to the tune of Rs. 311 crore.
Kotak Mahindra Capital Company, CLSA India, and J.P. Morgan India and YES Securities (India) are the global coordinators and book running lead managers to the offer.
At 10:16 am the stock was quoting lower over the listing price at Rs. 59.20 on the BSE and NSE respectively.